HB 5053 Summary

• Creates definition of "private investment fund" covering investment companies claiming exemptions under the Investment Company Act of 1940 and offering securities in Connecticut, effective January 1, 2011.

• Requires investment advisers to private investment funds to comply with disclosure requirements of Rule 204-3 under the Investment Advisers Act of 1940, specifically regarding material conflicts of interest, regardless of SEC registration status.

• Exempts private investment funds from state disclosure requirements if federal regulations regulating investment advisers to private investment funds are enacted by December 31, 2010.

• Amends Connecticut General Statutes Section 36b-3 to reference the new private investment fund provisions within the state's securities regulations framework.

• All provisions effective January 1, 2011.